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Trading Symbol: ELR (TSX); EPS (JSE)
VANCOUVER, July 26, 2018 /CNW/ - Eastern Platinum Limited
(the "Company") provides the following update on its current
activities.
Management Reorganization
The Company has received notice that Anton Lubbe, Vice President of its South African
operations intends to resign effective August 31, 2018. Diana
Hu, CEO of the Company commented, "we appreciate the work
and significant contribution Mr. Lubbe made in seeing the Company
through its care and maintenance phase and we wish him success in
his future endeavours."
The Company will reorganize Mr. Lubbe's duties between
Diana Hu, CEO, Andrea Zhang, COO and through the promotion of
Hannelie Hanson to General Manager of South African Operations. Ms.
Hanson has been with the Company's South African Operations since
2012 and has extensive operational experience with Anglovaal Mining
Limited and Lonmin, PLC over the past 20 years. Ms. Hanson holds a
bachelor of Science with honours, a Master of Engineering and a
Masters of Business Administration degree and has been integrally
involved in the technical details of all current projects and has
worked closely with management since 2016 as we have begun our plan
to transition from care and maintenance. Ms. Hu, CEO stated "I am
very pleased to promote someone as qualified as Ms. Hanson to
oversee and lead our transition to operations, which will include
additional recruitment, and look forward to continuing our
successful working relationship."
Construction of the Retreatment Project
As previously disclosed, on March 1,
2018, the Company and its subsidiary, Barplats Mines (Pty)
Limited ("Barplats"), entered into a framework agreement
(the "UG Agreement") with Union Goal Offshore Solutions
Limited ("Union Goal") relating to construction, mining and
processing of the tailing resource and offtake of chrome
concentrate from the Barplats Zanfontein UG2 tailings facility (the
"Retreatment Project") located at the Company's Crocodile
River Mine in South Africa
("CRM"). The Company and Union Goal have extended the
completion of all the conditions precedent of the UG Agreement
until August 31, 2018.
The Company continues the construction phase of the Retreatment
Project with the expected completion date estimated at the end of
Q3 2018. Construction work on the chrome processing circuit
continues and significant construction milestones have been met.
Progress continues on schedule at the tailings facility to prepare
for the mining phase and excellent progress has been achieved on
building the walls for the deposition of tailings with the target
for initial production as early as the fall of
2018.
Alpha Global Capital Inc. litigation
Due to inaction and delay by Alpha Global Capital Inc.
("Alpha Global") on its claim initiated against the Company
in South Africa (See News Release
of March 20, 2017 and Management
Discussion and Analysis of March 31,
2018), the Company has been advised that the matter has now
been removed from the court roll for a hearing that had been
scheduled for September 2018. There
is currently no date scheduled for this action. The Company will
continue to oppose any attempt for reinstatement and will seek to
have the claim struck and dismissed.
The Company has recently received notice of a further claim
filed by Alpha Global in the British
Virgin Islands seeking repayment of amounts Alpha Global
alleges are owed to it under the same 2007 agreement that was the
basis of its South African claim. Alpha Global is seeking payment
of an amount of ZAR 30,797,464
(US$ 2,296,604 at current exchange
rates) plus an amount it alleges is owing for default interest, for
a total claim of ZAR 142,886,964
(US$ 10,655,255).
Alpha Global's claims arise under an agreement entered into in
2007 in connection with the Company's acquisition of an additional
5% interest in Barplats Investments Limited (which indirectly holds
the Crocodile River Mine in South
Africa). Under that agreement, Alpha Global was to receive
the above additional amount if the Company subsequently completed a
"Fundamental Transaction". Alpha Global is now seeking payment of
that amount plus default interest and other relief in connection
with that agreement.
The Company is of the view that no amount is currently owing to
Alpha Global and as a result it is not entitled to any remedy in
connection with its alleged claim. The Company will take steps to
oppose the claim.
Cautionary Statement Regarding Forward-Looking
Information
This press release contains "forward-looking statements" or
"forward-looking information" (collectively referred to herein as
"forward-looking statements") within the meaning of
applicable securities legislation. Such forward-looking
statements include, without limitation, forecasts, estimates,
expectations and objectives for future operations that are subject
to a number of assumptions, risks and uncertainties, many of which
are beyond the control of the Company. Forward-looking
statements are statements that are not historical facts and are
generally, but not always, identified by the words "will", "plan",
"intends", "may", "will", "could", "expects", "anticipates" and
similar expressions. Further disclosure of the risks and
uncertainties facing the Company and other forward-looking
statements are discussed in the Company's Annual Information Form
and Management's Discussion and Analysis which are available under
the Company's profile on www.sedar.com.
In particular, this press release contains forward-looking
statements pertaining to: timing of the management reorganization,
the timing of completion of the conditions precedent to the UG
Agreement, estimated timing of construction and initial production
of the Retreatment Project, and timing and outcome of legal
disputes with Alpha Global. These forward-looking statements are
based on assumptions made by and information currently available to
the Company. Although management considers these assumptions
to be reasonable based on information currently available to it,
they may prove to be incorrect. By their very nature,
forward-looking statements involve inherent risks and uncertainties
and readers are cautioned not to place undue reliance on these
statements as a number of factors could cause actual results to
differ materially from the beliefs, plans, objectives,
expectations, estimates and intentions expressed in such
forward-looking statements. These factors include, but are
not limited to, commodity prices, economic conditions, currency
fluctuations, competition and regulations, legal proceedings and
risks related to operations in foreign countries.
The forward-looking statements in this press release are made as
of the date they are given and, except as required by applicable
securities laws, the Company disclaims any intention or obligation
to publicly update or revise any forward-looking statements,
whether as a result of new information, future events or
otherwise.
No stock exchange, securities commission or other
regulatory authority has approved or disapproved the information
contained herein.
SOURCE Eastern Platinum Limited